ANTI DUMPING

Question 1

trade remedy measure adopted by government to protect a
domestic industry against the unfair trade practice of dumping

Answer 1

Anti-dumping duty

Question 2

occurs when foreign producers sell their products to an importer in the domestic market at prices lower than in their own national markets, or at prices below cost of
production, the sale or importation of which injures or threatens to injure a domestic industry
producing like or comparable products or retards the establishment of a potential industry.

Answer 2

Dumping

Question 3

is a form of price discrimination between two national markets

Answer 3

Dumping

Question 4

refers to the country from where the allegedly dumped product was
shipped to the Philippines, regardless of the location of the seller. The country of export and
the country of origin may be the same, but not in all instances.

Answer 4

Country of export

Question 5

the country where the allegedly dumped product either was
wholly obtained or where the last substantial transformation took place. The country of origin
and the country of export may be the same, but not in all instances.

Answer 5

Country of origin

Question 6

Occur when the allegedly dumped product is not imported directly
from the country of origin but is physically shipped through a third country without, however,
entering into the commerce thereof.

Answer 6

Transshipment

Question 7

refers to the country of export or origin where the government
(i) has a monopoly, or substantial monopoly, of trade; and (ii) determines, or substantially
influences, the domestic prices of the products in that country.

Answer 7

Non-market economy

Question 8

refers to a transaction where the price is not affected by any
relationship between the buyer and the seller, or if there is no compensation,
reimbursement, benefit, or other consideration given in respect of the price.

Answer 8

Arm’s length transaction

Question 9

means the domestic price of the product in the exporting country at
the same level of trade which is sold or offered for sale at wholesale on the date of
exportation to the Philippines.

Answer 9

Comparable price

Question 10

an exporter who did not export the allegedly dumped product
during the investigation period.

Answer 10

New foreign exporter

Question 11

refers to a foreign exporter or producer
who has not been initially selected for the purpose of computing the individual margins of
dumping.

Answer 11

Non selected foreign exporter or producer

Question 12

A __________ may cover any specific kind or class of a foreign product which is
being imported, sold or is likely to be sold, into the Philippines at a price less than its normal
value, the importation or sale of which might injure or retard the establishment of, or is likely
to injure, an industry producing like products in the Philippines.

Answer 12

dumping protest

Question 13

importations exempt from anti-dumping protest

Answer 13

Products imported by, or consigned to, government agencies not organized for
profit and particularly designated by law or proper authorities to import, directly
or through awardees, such articles as would stabilize and/or supplement
shortages; and

Conditionally duty-free importations enumerated under Section 105 of the Tariff
and Customs Code of the Philippines (TCCP), as amended.

Question 14

otherwise known as the “Anti-Dumping Act of 1999” was
signed on August 12, 1999 and took effect on September 4, 1999

Answer 14

Republic Act (RA) No. 8752

Question 15

The
provisions of RA 8752 were adopted in ________ of the Customs Modernization and Tariff
Act (CMTA).

Answer 15

Section 711

Question 16

rationale for the passage of RA 8752

Answer 16

To transform the domestic anti-dumping law into a more workable and simple
piece of legislation providing safety nets against the inflow of cheap dumped
imports;

To strengthen the rules governing the investigation of anti-dumping cases; and

To align the domestic law with the World Trade Organization (WTO) Agreement
on Anti-Dumping Practice (Article VI of the General Agreement on Tariffs and
Trade, or GATT, 1994).

Question 17

issuances were promulgated to implement RA 8752

Answer 17

Joint Administrative Order No. 01, series of 2000

Tariff Commission (TC) Order No. 00-01

Question 18

Which government agencies administer the anti-dumping legislation

Answer 18

Department of Trade and Industry-Bureau of Import Services (DTI-BIS) or
Department of Agriculture (DA)

Tariff Commission

Bureau of Customs

Question 19

Who may file an anti-dumping protest?

Answer 19

on or behalf of, the domestic industry

Question 20

who is required to post a surety bond?

Answer 20

applicant (protestant)

Question 21

refers to the domestic producers of like products as a whole or to
those whose collective output of the products constitutes a major proportion of the total
domestic production of those products in the industry concerned.

Answer 21

Domestic industry

Question 22

threshold of support by producers for a protest to be accepted

Answer 22

Support by domestic producers whose collective output constitutes more than
50% of the total production of the like product

Support by producers accounting for at least 25% of the total domestic production

Question 23

who on may, on its own motion, initiate an anti-dumping investigation without having received a written application by or on behalf of a domestic industry.

Answer 23

DTI/DA

Question 23

information is required when applying for the levy of anti-dumping duty

Answer 23

Volume of the domestic production of the producers making the application;

Description of the alleged dumped product;

Names of the exporting countries, each known exporter or foreign producer, and
a list of the importers of the products; and

Information on dumping such as
(i) prices at which the product is sold in the
domestic market of the exporting country, and export prices;
(ii) injury and causality;
(iii) volume of dumped imports; and
(iv) adverse effects of such imports
on domestic prices and on the domestic industries.

Question 24

The DTI-BIS or DA, upon acceptance of the properly documented protest/application, has ________ to decide whether the facts would constitute a dumping case.

Answer 24

5 working days

Question 25

Once a prima facie case has been established, DTI-BIS or DA initiates the investigation which includes notification to the government of the country of export or origin and all known interested parties, and distribution of questionnaire to all concerned parties. DTI or DA has ___________ from receipt of the answer to the questionnaire to make its preliminary determination of the need for the imposition of a provisional anti-dumping duty.

Answer 25

30 working days

Question 26

In the conduct of its formal investigation, the Commission notifies all interested parties; receives representations and/or other submissions; holds preliminary conference and public consultations; and conducts on-site investigation/data verification both foreign and domestic. The Commission has ____________from receipt of the advice from either Secretary of DTI or DA to complete its investigation and submit its report of findings to the Secretary.

Answer 26

120 days

Question 27

Within ___________ from receipt of the affirmative final determination by the Commission, the Secretary of DTI or DA issue a Department Order for the imposition of an anti-dumping duty, unless the Secretary has earlier accepted an undertaking from the foreign exporter to increase prices or cease exportation at dumped prices

Answer 27

ten (10) days

Question 28

circumstances may a petition be rejected and the investigation terminated

Answer 28

Margin of dumping is de minimis, less than 2% Volume of imports from a particular country is negligible, i.e., less than 3% Injury is negligible

Question 29

Volume of imports from a particular country is negligible this rule does not apply when countries with individual shares of less than 3% collectively account for more than ______________of the product under investigation

Answer 29

7% of imports

Question 30

Before making the final determination, the Commission is required to disclose to the interested parties (e.g., exporters or producers under investigation, their governments, and importers) the essential facts on which the decision to apply the duty is made. The parties are given ____________ from the date of receipt of the essential facts to defend their interests in writing.

Answer 30

five (5) days

Question 31

What are the 4 elements of dumping?

Answer 31

like product price difference injury causal link

Question 32

product produced by the domestic industry which is identical or alike in all respects to the article under consideration, or in the absence of such a product, another product which, although not alike in all respects, has characteristics closely resembling those of the product under consideration

Answer 32

like product

Question 33

amount by which the normal value (the price prevailing in the exporting country) exceeds the export price (selling price to an importer in the Philippines).

Answer 33

price difference

Question 34

means “material” injury to a domestic industry, threat of material injury or material retardation of the establishment of a domestic industry

Answer 34

injury

Question 35

Injury test must be based on positive evidence and shall involve an objective examination of both :

Answer 35

(i) the volume of the dumped imports; (ii) effects of dumped imports on prices in the domestic market for like product; and iii) the consequent impact of these imports on the domestic producers of such products.

Question 36

refers to a finding that the material injury suffered by the domestic industry is the direct result of the importation of the dumped product. It must be clear that the injury suffered is directly attributable to the alleged dumping.

Answer 36

causal link

Question 37

is the foreign producer's domestic selling price of the article. It is the comparable price in the ordinary course of trade for the like product when destined for consumption in the country of export or origin

Answer 37

normal value

Question 38

instances that the foreign producer’s domestic selling price cannot be used as basis for normal value

Answer 38

No domestic sales of like product; Sales in the domestic market of the exporting country are not made in the ordinary course of trade (e.g. , sales are made below the cost of production); or Volume of sales in the domestic markets is low, i.e., less than 5% of investigated imports

Question 39

bases for alternative normal value

Answer 39

Comparable price Constructed value in the exporting country,

Question 40

is the price at which such product has been purchased or agreed to be purchased, at arm’s length transaction, by the person by whom or for whose account the product is imported, excluding any post-exportation charges such as ocean freight and overseas insurance

Answer 40

Export price

Question 41

Normally, export price is

Answer 41

(i) the ex-factory price at the point of sale for export; or (ii) the price assessed at the free-on-board level (at the point of shipment) of the allegedly dumped product.

Question 42

alternative export value used

Answer 42

No export price as defined; or Export price is unreliable because of a relationship or a compensatory arrangement between the foreign exporter and the importer or a third party.

Question 43

What are the bases for alternative export price

Answer 43

Constructed or deductive price based on the price at which the imported product are first resold to an independent buyer less all costs incurred between importation and resale Reasonable price as may determined by the Secretary of Trade and Industry/Agriculture or the Commission

Question 44

What exchange rate should be used for conversion purposes

Answer 44

The exchange rate prevailing on the date of sale should be used for conversion purposes

Question 45

What factors are considered in determining material injury to the domestic industry?

Answer 45

Actual or potential decline in output, sales, market share, profits, productivity, return on investments, or utilization of capacity; Effects on domestic prices; and Actual or potential effects on cash flow, inventories, employment, wages, growth, and ability to raise capital or investments.

Question 46

three modalities in determining the price effects of dumped imports

Answer 46

Price depression Price suppression Price undercutting

Question 47

- refers to the extent by which the domestic producer reduces its selling price in order to compete with the allegedly dumped product.

Answer 47

Price depression

Question 48

refers to the extent by which the allegedly dumped product prevents the domestic producer from increasing the selling price of its own like product to a level that will allow full recovery of its cost of production

Answer 48

Price suppression

Question 49

is the extent by which the allegedly dumped product is consistently sold at a price below the domestic selling price of the like product.

Answer 49

Price undercutting

Question 50

factors are considered in determining the existence of a threat of material injury

Answer 50

Significant rate of increase in the importation of the dumped product Sufficient freely disposable, or an imminent, substantial increase in, production capacity of the foreign exporter Whether dumped products are entering at prices that will have a significantly depressing or suppressing effect on domestic prices inventories of the product being investigated

Question 51

What other causes of injury not related to dumping are considered in determining causation

Answer 51

Volumes and prices of imports not sold at dumped prices; Contraction in demand or changes in the patterns of consumption; Trade restrictive practices of, and competition between foreign and domestic producers; Developments in technology; and Export performance and productivity of the domestic industry

Question 52

remedies/measures imposed against dumping?

Answer 52

Provisional Measure definitive duty

Question 53

takes the form of a provisional duty or, preferably, a security by cash deposit or bond equal to the estimated difference between the normal value and the export price of the protested article, the former being higher than the latter. It is applied only after the DTI-BIS or DA has made a preliminary affirmative determination no sooner than 60 days from the initiation of the case

Answer 53

provisional measure

Question 54

final anti-dumping duty imposed, in addition to the regular duty and other charges, on a protested product imported from a specific country following an affirmative final determination

Answer 54

definitive duty

Question 55

duration of imposition of anti-dumping measures

Answer 55

Provisional measure - four (4) months, extendable to six (6) months upon request by the exporter. Definitive anti-dumping duty - five (5) years from the date of imposition.

Question 56

is a voluntary commitment by the exporter to increase his price or to cease exporting to the Philippines at a dumped price, thereby eliminating the material injury to the domestic industry

Answer 56

price undertaking

Question 57

when shall be the offer of price undertaking be made?

Answer 57

only after a preliminary affirmative determination of dumping and injury to the domestic industry

Question 58

Price undertaking is effective for a period of __________

Answer 58

five (5) years

Question 59

is the imposition of anti-dumping duty in amounts lower than the calculated margin of dumping, if such a lesser duty is adequate to remove the injury to the domestic industry

Answer 59

Lesser duty rule

Question 60

reviews available to the affected parties of anti-dumping measures

Answer 60

a. administrative reviews sunset review interim review newcomer review b. judicial review

Question 61

- may be initiated by any interested party or upon own motion of the Commission before the sunset date (i.e., the 5th year) to determine whether the expiry of the anti-dumping duty would likely lead to a continuation or recurrence of dumping and injury.

Answer 61

Sunset review

Question 62

conducted by the Commission motu proprio, or upon the direction of the Secretary, or upon petition of any interested party to determine whether (i) the need for the continued imposition of the anti dumping duty is no longer necessary to offset dumping taking into consideration the need to protect the existing domestic industry; or (ii) the existing duty is not sufficient to counteract the dumping which is causing injury. At least one (1) year should have elapsed since the imposition of the anti-dumping duty before an interim review can be made.

Answer 62

interim review

Question 63

carried out on an accelerated basis for the purpose of determining individual margins of dumping for new exporters (new shippers) in the exporting country in question which have not exported the product during the period of investigation on which the measures were based. The new foreign exporters requesting for such review must not be related to any foreign exporter who is subject to the anti-dumping duty.

Answer 63

new comer review

Question 64

Any aggrieved and/or interested party may file a petition for review with the______________________ from receipt of notice of the final ruling on the imposition of an anti-dumping duty. Filing of such petition for review shall not in any way stop or suspend the imposition and collection of the anti-dumping duty.

Answer 64

Court of Tax Appeals within thirty (30) days